RKDA - Earnings call transcript Q1 2024 | Arcadia Biosciences, Inc.

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Operator

Thank you for standing by. My name is Parilla, and I will be your conference operator today. At this time, I would like to welcome everyone to the Arcadia Biosciences Q1 2024 Financial Results and Business Highlights Conference Call. [Operator Instructions] I would now like to turn the conference over to T.J. Schaefer, Chief Financial Officer at Arcadia. ahead. go Please

Thomas Schaefer

good and Thank afternoon. you,

to Joining me Arcadia's webcast, is release refer Jacot, call and the and arcadiabio.com. Chief can being today President is Executive Stan call press on Officer. company's the you at This

to available Before you Biosciences information. statements this that forward-looking current on remind call we making would based be expectations Arcadia we on start, like will and currently

materially are and and these statements based those differ uncertainties, results company's since that risks on implied However, involve or performance the actual may today. from described factors

You our can language review the company's safe most harbor in XX-K. recently filed

I'll over turn that, With now the to Stan. call

Stan Jacot

pleased Good our report business positive from you first afternoon, we that for QX review for trends continued in XXXX results today am XXXX. Since to weeks thank QX to everyone, quarter X XXXX. last the joining and talked have us I ago,

to Revenue grow and sequentially continues year-over-year. both

a quarters. year. X continued Our to than XX% gross for at pace been greater profit Operating expenses margins double-digit consecutive versus have decline last

All of operations years. contributed X achieving XXXX, over in from QX lowest to loss the continuing these factors have

attention turn brand of a on Let's stores continues waffle of our with QX now The adding GoodWheat. to couple and pancake distribution hundred to mixes. expand GoodWheat

fierce plans shelf distribution pricing, be defend placement, our to everyday brand for from SKU a scale place shelf to continues necessary achieve There and expense focus require Our in competition. are in significant but promoted are and success existing expansion and specific point nurturing stories of building plans category. to addressing These order marketing. by each space pricing, execute account customer,

publications, Cheddar, we the to Better share received Basket several has nationwide in Cheese. want This, on In GoodWheat Amazon that from accolades GoodWheat That. X QX, website, Homes And received varieties: Cheddar another White from call, and & customer. Mac launched Cheese Three a and I some GoodWheat our our and mentioned brand last Not I Eat Gardens had including significant On accolade

offer driven recently that Mac new well & Cheese more our source already This an viable use great an that reiterate, as Amazon, includes benefits. products by Amazon's criteria, proves food grocery pick. thousands more to and of of priced, the GoodWheat in being know food immediately. commercially rated, create At is viable expanding tasting ship selected which store To Three can and includes taking There solely GoodWheat. fiber from the Cheese example products Amazon's technology same in wheat wheat business across to while arrival X is independent we our these protein. model Choice, our is beyond and that available designation into that This products highly service are proprietary

long-term So generate we to see path recurring a revenue. royalty

pursuing supply order actively partner produce mill identity integrated flour. wheat key farm scalable, in to move into technology all X seed cost-effective wheat preserved technology. been a have a chain steps preferred monetizing to We this and then to One, wheat from wheat We varieties deliver with efficiently to supply. to our customer need

manufacturers In large R&D parallel, to a potential in underway enough partnership second groups. will is pull-through hope across our have chain long-term a our we Conversations to products with the system. categories, develop discussions volume work currently with time some through partners ensure take supply create you to soon. can are We This it are and to and several their for step with wheat. food final to update demand create

back and weeks momentum a for XXXX, perform dollar ending growth XXXX. both to March Zola water sales Nielsen let's the latest weeks ending increasing XX% with is to in XXXX this ago, according growing to in XX, versus continued for sales, and Now in sales continue growing unit category share that of Zola will QX are and optimistic coconut Zola Zola dollar XX% double-digit XXXX, well is The we move X showed the Water. data XX% couple Coconut category, in reasons. XX the to sales. XX, continuing. March X in In unit year

in innovation is One, lineup. and naturally Tetra is adding more new the the flavor flavors hydrating will and coconut Zola is QX accounts by that our begin The flavor water. variety by nearly Zola's section. sparkling their the confirmed #X to in of water retailers store received end XX.X-ounce been #X this lime shipping set have new pineapple our we lime count as bringing count stores to resealable container have adding Pak distribution flavor and Zola X,XXX Original, pineapple to well beverage QX. for total single-serve will Two, new X,XXX produce the store several be in for the over

Our focus sales will can ensure to achieve new our dollar retailers same enjoy. these stores and current be the quickly as velocity

to profit, and Zola expect both next the the explore continue be a for consumer-preferred and revenue gross innovation. we wave will So we driver us for future of key to growth in

have last flow range options, detailed for sale while provide explore last significant and sale, continue strategic The a Arcadia acquisition, number to a or IP strategic and time, of our other which to transaction. is we, the we have outcome our bankers, engaged with a monetize work we cash ability diligence and of stated would discuss find include the Arcadia And the results. today, best our strategic aren't could initiative necessary announced update partners to deliver due that merger, discussions along which with ready review Since accelerate today to to asset that positive perform our year, potential to shareholders. transaction an

out updated conclusion there in transaction, you assurance result alternatives completing must this that the occur, be entering and no set company that has will strategic and point been events for or of exploration timetable we strategic material the as can of the no review. keep will any We

time for the history. our call, net operating anticipated in first last $XX company's be loss the in discussed under As we XXXX our to million

this that has met and to QX in to optimize goal. Our XXXX grow and achieve plan we margins of to deliver for the revenue, expenses reduce order operating performance in trend and expectation objective, our order remainder

to turn T.J. With results. to I'll over the our QX T.J.? that, financial discuss call

Raghuram Selvaraju

everyone you, Thank today. and good afternoon to on joining us the Stan, call

I our to impact like begin, results exclude Care all the brands, which remind Body of year to would discontinued that September prior everyone I comparisons our Before XXXX. were in

last that, and through quarter X% is the first same increase Revenues The results XXXX. XX% our seasonally to for $X.X million me the X% With improvement let walk of increased to was for quarter of as attributable water. period the quarter-over-quarter QX sequentially softest approximately year. a Zola in compared coconut

was product Zola higher by costs profit Gross quarter very new with and partially prior sales, growth primarily in Our still of GoodWheat $XXX,XXX below by but offset resulted year slightly associated year-over-year mix, margin to a prior healthy driven gross of due and the distribution. XX%. was

development and quarter-over-quarter XX%, fifth the of work this excess due of year-over-year of declined have quarter flavors. our revenue. $XXX,XXX margins of XX% well timing categories new delivering innovation testament And as to to XX% earlier, gross and Stan delivering Zola is following Research as as the progress expenses launch we new consecutive GoodWheat mentioned the in which a is made in high-quality

decreased which year million investment. compared loss past same sequentially approximately general resulting approximately and in in to Selling, we $X.X level last the XXXX million from improved continuing our rightsized of the as expenses million Total $X.X versus organization XX% and of X% period and expenses years. administrative year-over-year, QX operations the XX% of $X.X and a lowest X is X% operating the marketing

which $X.X investments in $X.X is From quarter our the cash below and a short-term ending with balance sheet million perspective, QX XXXX we ended million balance.

we our single call, As last use digits, we believe hold in we that stated will to our be of guidance. continue cash earnings on to and the

half the payments cash towards related and year driven the will heavily employee insurance. first However, use to of cash by more our of bonuses weighted be larger

XX% balance Our inventory $X QX was at of XXXX, end at GoodWheat. the million which stood of

balances We over focus on will we down past stores existing quarters. QX the few work summary, these in we've continued distribution. momentum positive driving velocities achieved versus continue new the In to as

Our year-over-year. revenue grew and quarter-over-quarter

X margins of We have for achieved gross XX% quarters. in straight excess

the operating be use by to our the the or public Arcadia digits first in same from and for since At time we have resulted being cash loss nearly years, at XX% our level X our the went $X expenses in continuing single lowest operations which million, we in time, of has estimate reduced in XXXX.

So to made very are positive work order while flow in and results achieve to we we deliver value have do of we the still plenty cash in QX. progress our shareholders, pleased to with

the for operator the will questions. now I over call to turn

Operator

comes Instructions] from Street. Lake first Ben question Your the with Klieve of [Operator line

Benjamin Klieve

expenses and questions of during the if with expenses a impact the you prepared the gross you characterize on First, remarks. that around quarter. noted kind your of the both expansion magnitude of associated GoodWheat the first help couple I'm first, wondering, in can profit the associated

Stan Jacot

to calling for that question. going in. calling to I'm to turn Yes, And that T.J. actually answer Ben, thanks, over

Thomas Schaefer

Yes, Ben.

So the customers those investment promotions a we again, as stores. overall come previously, more investment our will we've relative marketing around noted of lot prior and to into years slotting. our significantly and quarters But velocities down new focus is upfront distribution or prior on existing as versus driving new

Benjamin Klieve

helpful. That's Okay.

of ask of trajectory this kind year. costs but So here these it I around my we'll follow-up question, the think kind answered of you've throughout anyways

potentially quarter outlined So of going like ramping cost they you to from consistent with and third quarter? here are going to these quarter first the kind you're the rate these a levels? initiatives second T.J. the think -- associated just you saying it be that run at into the down sounds are stay Or

Stan Jacot

by to QX. Ben, will Yes, down it start ramp probably

Benjamin Klieve

if about Okay. today, past process? retail early Very talked a being level talked wondering kind high about your could throughout of something kind I'm good. the focus you've you of then of just this results far on That's in the existing for about as a quarters thus XXXX. Stan. on you focus couple And helpful, talk nurturing relationships

uniquely kind of can existing regarding Are you with Are that things well? have with elaborate that be are that on you in you Is the the happy challenges retailers? going the are there your of great. still anything there are there relationship would place? Or strategy progression

Stan Jacot

mixed, retailers, say reasons differs out. have there of but with behind variety to again, it. are really there's struggling And account. I'd It plan the we've laid that some We still do Ben. by some spots execute some high a we're are retailers results the

the changing in prices. promoted times, either it's resistance planogram Sometimes, buyers, the it's in or in it's change to securing difficulty Other a SKUs. adding sometimes the

at is difficult is these markets. would say it It I -- point. in competitive it's So but mixed and this

Benjamin Klieve

doubt look updates coming And last Zola. There's in then good. No, about X on fair that then We'll no is on Okay. for me that quarters. enough. Very forward to

your of single expansion seem also flavors here the guys enthusiastic and opportunity the pretty serve. from You SKU expanding about with new count

that's the in XXXX characterize Can all initiatives you Zola progression vision kind this of of the of these GoodWheat throughout above to I'm in as to Is your scale. be especially for to revenue really year be these this is and to kind going here given ultimately, Zola here begin going and coming beyond initiatives? quarters something -- trying understand driver if a

Stan Jacot

majority Yes, kinds the is we particular, the and have a in come same I required and of set think going to And selling of The category driver It's reason of costs. characterization. different growth much profit doesn't the required. dollars that Zola promoted fair is of be that growth. part in revenue, produce terms with a because in the dollars the for Zola that's that gross in

Benjamin Klieve

rolling well Zola. of those best all initiatives out luck

Operator

remarks. to no this Stan further questions back it are will time. now closing at there And Jacot for I turn

Stan Jacot

you. Thank

So in conclusion, is positive continuing Arcadia its trajectory.

the high-quality revenue have across gross top sources. to profit multiple transitioned generates that We line

the organization runway. in structure cost order the extend rightsized our have and streamlined We to

categories, flavors Our new X double-digit than in stores in Zola GoodWheat for growth and and more Water is positioned with is new Coconut distribution. X,XXX

our us, remain joining finally, again rest And results. delivery flow and a day. Thanks you IP focused cash to on updating look the We in great have forward accelerating of of we your future. monetizing positive and for

Operator

Ladies and joining. gentlemen, all that you Thank concludes call. for today's

You may now disconnect.

Arcadia Biosciences (RKDA) 9 May 242024 Q1 Earnings call transcript